Final SEC Whistleblower Rules Restrict Lawyers’ Eligibility for Awards

The Securities and Exchange Commission’s final rules implementing the whistleblower provisions of the 2010 financial reform law generally disallow awards for information obtained through attorney-client privileged communications or through legal representation unless disclosure is permitted by attorney conduct rules.

The rules make clear that attorneys will not be rewarded for information that is provided contrary to an attorney’s professional obligations and SEC rules, the commission said in its release adopting the final rules.

In a May 26 statement about this aspect of the final rules, ABA President Stephen N. Zack commended the SEC for recognizing the importance of the attorney-client ...